Check my work 5 Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center of a large urban area have experienced declining profits due to declining population. The company's management has decided to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below. 2 points eBook Book value Estimated undiscounted sum of future cash flows Fair value $7.3 million 4.4 million 3.9 million Hint Print References Required: 1. Determine the amount of the impairment loss. 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $7.6 million and fair value is $5.4 million (Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place, (1.e., 5,500,000 should be entered as 5.5)). $ 1. Impairment loss 2. Impairment loss 3.9 million 5 million $ Mercury Inc. purchased equipment in 2019 at a cost of $138,000. The equipment was expected to produce 500,000 units over the next five years and have a residual value of $38,000. The equipment was sold for $78,200 part way through 2021. Actual production in each year was: 2019 = 70,000 units; 2020 = 112,000 units; 2021 = 57,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $105,200, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the gain or loss on the sale. (Do not round intermediate calculations.) Required Required 2 >